Dorcas Morgan, Park Theatre

Helen Elliot, Sayer Vincent

Dorcas Morgan & Helen Elliott

7 November 2016

Membership benefits & HMRC

Benefits such as:

• Priority booking rights

• Discounts

• Newsletters & literature

• Invitations to first nights, rehearsals

• Usually the amount paid is more than the value of the benefits with

balance being a gift

Membership and patron schemes

Donation Benefit allowed

Up to £100 25% of the donation

£100-£1,000 £25

Over £1,000 5% of the donation

Overall limit £2,500

Gift Aid benefit rules

• Membership £1,000, benefits for Gift Aid max £25

• Membership £1,001, benefits for Gift Aid max £50

• Charity literature e.g. annual reports, newsletters

• Acknowledgements e.g. name on back of theatre seat

• Naming a building OK but not if business name

• Priority booking rights

• Stickers, pins, badges etc – must be of negligible value

Disregarded benefits for Gift Aid

But note that most of these are NOT ignored for VAT purposes

1. Donation with high benefits – no Gift Aid

2. Donation with benefits under limit – Gift Aid all

3. Split benefits and donation – Gift Aid on donation element if can

buy the benefits package separately and clear that donation

optional

VAT: likely to be VAT on 1. & 2. but only on benefits for 3.

Membership options for Gift Aid

• Value each benefit in relation to donation

• Value commercially available benefits at commercial value

• Discounts based on actual or average uptake

• Special events at event cost per head

• Priority booking rights & charity literature – can be ignored

• No celebrity element unless commercially available

• If benefits value is below allowed limit, then Gift Aid all but may need to

account for VAT

Membership schemes – Gift Aid

Benefit limits exceeded?

• Reduce the level of benefit, or

• Make benefits package available for a separate fee and ask for a

donation (with Gift Aid) – only benefits package includes VAT, not

donation

Membership schemes – Gift Aid

A minimum payment of £250 secures all Bronze Patron benefits, but you

may purchase these benefits separately without making any further

donation. The balance of £500 is a suggested donation.

• Priority booking

• 10% discount on tickets

• Invitation to a rehearsal

• etc

Example: BRONZE PATRON £750

Minimum payment: £500, suggested donation £1,000. The donation

portion is a suggested donation to which Gift Aid provisions apply, but you

may purchase the benefits package separately without making any further

donation.

• 20% discount on tickets

• Invitation to after show party with the director

• etc

Example - SILVER PATRON £1,500

Helen.Elliott@sayervincent.co.uk

www.sayervincent.co.uk

Publications

• made simple guides

• updates

www.gov.uk/claim-gift-aid

www.gov.uk/charities-and-tax

Further guidance

Dorcas MorganPark Theatre Development Director

Submitting your Scheme for Approval

• How should benefits be costed?

• Can I include discounts in my benefits?

• Do I have to make benefits available to the general public?

• How clear do I need to be about the sale of benefit packages?

GUIDELINES FOR DESIGNING GIFT AID COMPLIANT

PATRON SCHEMES

• Are there any benefits I can offer that don't need to be costed?

• How clear do I need to be about the donation?

• How do I make this clear to my subscribers?

• What needs to have VAT added? (This section is for info only and does not need including on your submission form)

CONTINUED…

You may chose to instruct anyone wishing to buy a stand alone benefit package back to your development department, thereby making packages available for sale, but introducing contact with the fundraising team to encourage donations.

Special Note

(This was agreed with Tony Johnson at HMRC at the Gift Aid on Memberships workshop held on 21 January 2016.)